Indonesian Rate Cut
May 5, 2009
Bank Indonesia lopped off another 25 basis points from its key interest rate to 7.25%. Such was the sixth reduction since December 4th from a peak of 9.5%. Similar to the prior easing, today’s statement projected 3.4% growth in GDP this year and inflation hovering near the floor of its 5-7% target range. Since the central bank rate remains well above expected inflation, more rate cuts seem probable.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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